In a world where every new FX broker, legal ones, tries to come up with a modern new look that sets it apart from the rest, we find the scammer LoowireFX, a simple fraudulent broker that seems to be oblivious of this trend, or maybe it simply does not care. Whatever it may be, LoowireFX presents us with a simple and very shallow website, that is also painfully bland and boring. Unfortunately, there is nowhere to go from here but down. LoowireFX is a very typical unregulated broker. Read the review to find out how.
Trouble started brewing early on, s we failed to register an account because the confirmation code that was sent to us did no work at all. This means that we have to take all trading details from the website, and we do not trust a single bit of this sloppy website. Our readers should be skeptical as well.
The alleged tradeable asset categories are forex currency pairs, spot metals, indices, and commodities. The list is strikingly short. We opened a demo account with the MT5, which when downloaded, automatically opened a demo account for us. There we were able to acquire a EUR/USD of trade of around 1 pip, but the spread was very volatile. We cannot know if the demo account reflects the actual trading conditions. We find no leverage value, though.
LoowireFX comes in English and Chinese.
LOOWIREFX REGULATION AND SAFETY OF FUNDS
LoowireFX’s regulatory is a mix of deceptive details and laughable mistakes.
Loowire Global Limited is said to be regulated by ASIC, and by the “Cyprus financial sector conduct authority”.
First of all, LoowireFX is not licensed with ASIC. Second of all, LoowireFX is not licensed by either CySEC or the Financial Sector Conduct Authority of South Africa. None of these regulators holds regulatory proof for LoowireFX.
We also have a contact address in the UK, but we seriously doubt that LoowireFX is regulated in the UK. It may, however, be registered there. If this were true, then the broker would be illegally operating within the UK.
There is another company named just as this one, with the only inclusion of a dash: Loowire-FX. These seem to operate under the same name, and there is a very high chance that both firms are operated by the same shady company.
There isn’t any plausible conclusion other than LoowireFX being UNLICENSED and a risk to all users.
Never rely on unlicensed brokers. They are scams and will steal from you! Put you money where the real FX trading happens, with any FCA or CySEC regulated broker, or any other brokerage licensed by a legit overseer. All watchdogs demand a safe and integral conduct and do not tolerate unlawful behavior. Moreover, the FCA and CySEC offer compensation schemes applied to users whose broker cannot pay them back. CySEC offers a €20 000 refund amount per person, while the FCA guarantees up to £85 000.
LOOWIREFX TRADING SOFTWARE
Somehow LoowireFX was able to get the MT5.
This is the best trading software around, and we still wonder how such a sloppy broker was able to get a hold of it. Usually, we put out cards on some sort of hack. Nevertheless, the presence of the MT5 is not nearly enough to compel us to change our opinion on this broker. LoowireFX remains unregulated and a risk.
LOOWIREFX DEPOSIT/WITHDRAW METHODS AND FEES
If you expected to see any deposit or withdrawal information, then you haven’t paid much attention to the review. There is nothing to work with here. The payment information is out of sight and reach.
The most common minimum deposit is $250, but it really matters what kind of a broker one is using. With scammer ones, one can expect anything from $1 to $10 000.
As for the payment methods, the most common ones are credit cards, debit cards, wire transfers, crypto wallets, and alternative payment gateways.
Withdrawals are unpredictable with unlicensed brokers. All the fees and conditions behind them depend on the broker. However, one thing is certain; all withdrawals are very difficult to process, and at times impossible.
LoowireFX is a risk to all invested capital. We urge our readers to leave it as it is and move on to better things.
How does the scam work?
The scam really works when the reps of the broker contact the user, either through a phone call or an email address. They will start asking for deposits all the while promising super profit gains. Those that deposit might even get a taste of false gains, whose true purpose is to compel the client to deposit more. These scammers know very well how to manipulate users. Their catalogue of psychological trickery is vast, and their patience is unbreakable.
An initial deposit leads to a second one, a third one and so forth.
As for the methods of these fraudsters getting a hold of your phone numbers or email addresses, they are many, and most of them follow simple steps. It takes a false ad to convince a user to give her contact details. These false ads are very promising, but ultimately misleading and very manipulative. You might have already seen them: luxurious cars and villas, care-free lifestyles, expensive items, and beautiful vistas. All are stock images to start you imagination and propel you to give away your contact address, and in the perfect scenario, to invest.
Once the client wishes to withdrawal, either because she feels suspicious, or because she wishes to take out some cash from her profit, the broker will apply a number of very cheap techniques to make withdrawals impossible. For one, the scammer will close down the accoutn, shut the entire website, or just not return phone calls and emails.
What to do if scammed?
If a user has lost funds by means of a credit or debit card, then the first thing to do is the file for a chargeback. MasterCard and VISA have a chargeback period of 540 days.
Bank account swindles are harder to get bank but not impossible. First of all, change you bank account user name and password, and then call the bank to find a plan of action together.
Never invest with cryptocurrencies sin an unregulated broker. All such deposits are lost, and cannot be recuperated.
Also, don’t trust the self-proclaimed recovery agents. These are also scammers, and will ask you for a fee, and in return they promise to recover all your lost funds. Obviously, once this commission is paid you will never hear from them again!
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